Cathay Dragon shutting down: effects of the pandemic

Cathay Pacific Airways, headquartered in Hong Kong, has said that it is shutting Cathay’s regional brand “Cathay Dragon”, as the Covid-19 pandemic is shaking the worldwide aviation industry. Cathay has announced that the organization will stop operating immediately, pursuing legislation to incorporate most Cathay Dragon’s to Cathay Pacific and HK Express affordable arm services in Hong Kong. Dragonair re-branded as Cathay Dragon.

Cathay Officials said, “significant savings will be made” by comparing the Cathay Dragon fleet’s narrowness with the long-distance floor of Cathay Pacific and concentrating on selling a single luxury brand.

With the close-off of the brand Cathay Dragon, it would be unable to export any freight to Fuzhou, Guangzhou, Kuala Lumpur, and Fukuoka. Carriers worldwide now battered by COVID-19, even despite a hoped-for return from either the recession, they have not materialized in a long.

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Approximately four thousand cabin crew, 600 pilots, 700 other workers have been informed they will be obsolete in a consolidation of the sum of  US$ 284 million. The carrier has reported that 5,900 workers will quit their employment in the coming weeks. That will erase about 2,600 unfulfilled posts.

The company controlled most volumes to/from China and was struck by a drop in demand even before the outbreak leading to powerful anti-government demonstrations in Hong Kong.

Order of New Aircraft

After the start of January, Cathay share prices have dropped 43 percent. It entered a deal with Airbus SE in July to postpone the shipment of A350s and A321neos said it was in early negotiations with Boeing Co to postpone its ordering for the 777-9.

Freights routes affect

Cathay Dragon Brand Shutdown would affect Fuzhou, Guangzhou, Kuala Lumpur, Fukuoka air freight in the brief period-Memo to Freight Clients.

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